Monte Rosa Therapeutics Inc (Nasdaq:GLUE), a clinical-stage biotechnology company developing novel molecular glue degrader (MGD)-based medicines, announced on Monday that it has entered into a global licence agreement with Swiss pharmaceutical company Novartis Pharma AG (SIX:NOVN) (NYSE:NVS) to develop and commercialise VAV1 molecular glue degraders, including MRT-6160.

Under the terms of the agreement Monte Rosa will complete the ongoing Phase 1 study, while Novartis will assume responsibility for Phase 2 and later-stage clinical development, manufacturing and commercialisation of MRT-6160.

Monte Rosa will co-fund any Phase 3 clinical development and will share any profits and losses associated with the manufacturing and commercialisation of MRT-6160 in the United States. The company will receive a USD150m upfront payment, potential milestone payments of up to USD2.1bn and tiered royalties on ex-US net sales.

MRT-6160 targets VAV1, a key signalling protein involved in T- and B-cell activation. The drug has shown promising preclinical results in various immune-mediated diseases.